The Free Economic Zone of Manaus ( pt, Zona Franca de Manaus, - ZFM) is a

free economic zone Free economic zones (FEZ), free economic territories (FETs) or free zones (FZ) are a class of special economic zone (SEZ) designated by the trade and commerce administrations of various countries. The term is used to designate areas in which co ...

in the city of

Manaus Manaus () is the capital and largest city of the Brazilian state of Amazonas. It is the seventh-largest city in Brazil, with an estimated 2020 population of 2,219,580 distributed over a land area of about . Located at the east center of the s ...

, the capital of the State of Amazonas,

Northern Brazil The North Region of Brazil ( pt, Região Norte do Brasil; ) is the largest region of Brazil, corresponding to 45.27% of the national territory. It is the second least inhabited of the country, and contributes with a minor percentage in the national ...

. The initial idea, a free trade port in Manaus, came from Deputy Francisco Pereira da Silva and was subsequently formalized by Law No. 3.173 on June 6, 1957. The project was approved by the National Congress on October 23, 1951 under No. 1.310 and regulated by Decree No. 47.757 on February 2, 1960. It was then amended by rapporteur Maurício Jopper, engineer, who by agreement with the original author, justified the creation of a free economic zone instead of a free trade port. For the first ten years the ZFM (Manaus Free Trade Zone) was located in a warehouse rented from Manaus

Harbour A harbor (American English), harbour (British English; see spelling differences), or haven is a sheltered body of water where ships, boats, and barges can be docked. The term ''harbor'' is often used interchangeably with ''port'', which is a ...

, in the

Port of Manaus The Port of Manaus is a riverport located on the Rio Negro in Manaus, Amazonas, Brazil. The Port of Manaus is an important commercial center for ocean-going vessels traveling the Amazon. In fact, it is the main transport hub for the entire upper ...

, and relied on federal funds. It was perhaps due to this lack of its own resources that there was little credibility in the project. On February 28, 1967, President Castello Branco signed Decree-Law No. 288, whose draft accompanied the Exposition of Motives. Decree-Law No. 288 amended the provisions of Law No. 3.173/57 and redefined the Manaus Free Trade Zone in more concrete terms. The new Decree-Law stipulated that the Manaus Free Trade Zone would have an area of with an industrial centre as well as an agricultural center and that these would be given the economic means to allow for regional development in order to lift the Amazon out of the economic isolation that it had fallen into at that time. Decree No. 61.244 of August 28, 1967 created the Manaus Free Trade Zone Superintendence, SUFRAMA, an autarchy with its own legal status and assets and having financial and administrative autonomy.

Tax incentive A tax incentive is an aspect of a government's taxation policy designed to incentivize or encourage a particular economic activity by reducing tax payments. Tax incentives can have both positive and negative impacts on an economy. Among the posit ...

s and the subsequent complementary legislation created

comparative advantage In an economic model, agents have a comparative advantage over others in producing a particular good if they can produce that good at a lower relative opportunity cost or autarky price, i.e. at a lower relative marginal cost prior to trade. Comp ...

s in the region with respect to other parts of the country and as a result the Manaus Free Trade Zone attracted new investment to the area.Free Economic Zone attracted new investiment
/ref> These incentives constituted tax exemptions administered federally by SUFRAMA and SUDAM.

References

{{reflist Taxation in Brazil Manaus

Manaus, Brazil Manaus () is the capital and largest city of the Brazilian state of Amazonas. It is the seventh-largest city in Brazil, with an estimated 2020 population of 2,219,580 distributed over a land area of about . Located at the east center of the st ...

Foreign trade of Brazil